If a program to eliminate any taxes on IRA's for withdrawals was passed for the next one or two years the country would boom. I for one would buy a new car and house. As it is now I'll just take my MRD and sit on the rest forever.
Create a run on the banks? hate to tell you but just because your statement says that you have a large balance does not mean those funds are available in large amounts. Banks would have to liquidate massive holding to satisfy the demand. Dream on or be the first one out.
Say what? My dad left me 53,000 shares of CVX (among other assets) in an IRA that I have to draw on every year and it sucks. I had to sell some last year to pay taxes on what I moved into a separate investment account as part as my MRD.
They get you when you make it and they get some when you die. Then they get some more when your heirs are forced to make withdrawals...legalized, government sanctioned larceny, pure and simple.
Your statement, they tax you when you make it and then some when you die. You have to remember that the money put into an IRA was not taxed. It was allowed to grow without tazes until it was withdrawn, which could be after 55 years of age. This means that the taxes ordinarily which would have been paid were actually making money for the IRA owner. An account in an IRA compared to a like investment not in an IRA would be worth considerably more than one not in an IRA. You are fortunate that your father managed his finances so masterfully. So be thankful what you got.
goodness gracious... 2 ways to go...
either take out whatever amount y'all wish and pay the 10% penalty, plus ordinary tax... the 10% penalty is chickenfeed, compared to the benefit of the extra money in y'all's pocket...
the other way is the SEPP, Substantially Equal Periodic Payments Exception... for example, the stock pays dividends every quarter, sooo, take out the same percentage of the dividend each quarter, every quarter, 4 times each year, y'all will have extra money in y'all's pocket... now, if y'all "51" as y'all's name description indicates, the SEPP program would be in effect just till y'all reach 59 1/2 years of age, or extended longer, if that percentage works for ya, versus what y'all would have to take out at age 59 1/2...
simple, nothin' complicated here, we're not doin' rocket science...
IRA's are great for investing and for estate planning, a lot better than how insurance companies would like y'all to leave assets...
Look out for the redistributionists my friend. Someone from the Obama administration will be knocking on your door soon. Nobody deserves to have that much accumulated wealth. Shame on you. After all, as the prez says "at what point do you have enough?"
53,000 CVX shares in an IRA (among other assets) gifted to you at age 51 and you're complaining? What a crybaby!
53,000 CVX shares at $85 is more than $4.5 million.
With current dividend rate of $2.88/year that is over $150,000 a year in dividend income.
Also, sounds like you did not have a good tax advisor to give you best advice when you moved your assets to a new account.
Rich whiney crybabies like you are part of the problem in the U.S.
If your father did not have the assets in an IRA to start with, you would've had much much less $'s right now.
U.S. Tax rates on high incomes (assuming you also have a job) are lowest they've been in many years.
I'd buy gold and silver, immediately. The reason why there are IRAs and 401ks is so you don't buy physical gold and silver, if you buy either, it is not in your control.
Thats why they wont do it. There would be a fiat flood into gold and silver bullion.
You can take $10,000 out without a penalty for a home purchase its not much but something. I wish I had never even started an IRA now, Democrat Bernie Sanders from the mentally deluded state of Vermont is trying to put a bill together for the elimination of IRA's into Government Retirement Accounts.